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Carter Manufacturing Company manufactures exclusive pens which sell for $60 per unit: Its unit variable costs are $28 and fixed expenses are $384,000. The company
Carter Manufacturing Company manufactures exclusive pens which sell for $60 per unit: Its unit variable costs are $28 and fixed expenses are $384,000. The company pays income tax at the rate of 30%. Required: 1. How many units must Carter sell to earn an after-tax income of $22,400? Units 2. Re-compute the sales level to earn the above-mentioned after-tax income if the tax rate changes to 40%. Sales level required (units)
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